About.com has a bit up with Sarah Michelle Gellar talking about the status of The Grudge sequel.
Sarah Michelle Gellar on The Grudge 2: "Good question. I don't think they're anywhere near. I still can't figure out if I'm alive or dead. I'm still working that one out. Basically I only like to choose films that I don't understand. As long as they're greater than my mental capacity, I figure I gotta be doing something artful, right? Isn't that what makes something art when you don't understand it?"